In 2026, the annual cost of owning a car in Singapore typically ranges between $24,000 and $42,000+ per year, depending on COE cycle, car profile, and usage level.
That translates to roughly $2,000 to $3,500+ per month in true economic cost terms — after pricing depreciation properly.
If you only do 1 thing:
This page is an annual snapshot. It’s useful for budgeting — but it can hide COE timing and holding-period risk.
| Ownership Profile | Estimated Annual Cost | Estimated Monthly Equivalent |
|---|---|---|
| Lower exposure (smaller car, lower COE cycle) | $24,000 – $28,000 | $2,000 – $2,300 |
| Mid exposure (typical Cat A/B range) | $30,000 – $36,000 | $2,500 – $3,000 |
| Higher exposure (larger car, high COE cycle) | $38,000 – $42,000+ | $3,200 – $3,500+ |
These figures include depreciation (COE impact), insurance, fuel, maintenance, parking/ERP and opportunity cost. They are simplified planning ranges (not quotes).
Depreciation — largely driven by COE decay — is usually the biggest annual cost. In many ownership profiles, this alone can be $15,000–$25,000 per year.
If you don’t understand COE structure, your annual estimate will be wrong. See: COE Cost in Singapore (2026)
Insurance commonly ranges from $1,200 to $3,000+ per year, depending on driver profile and vehicle type. Full breakdown: Car Insurance Cost in Singapore
Fuel varies by mileage, but many drivers spend $2,500–$4,000 annually. Heavy daily usage increases this materially.
Routine servicing and wear-and-tear often ranges $1,000–$3,000 per year, with higher volatility for older vehicles.
Season parking + workplace parking + ERP can add $2,000–$5,000 per year. Urban-heavy users may exceed this.
A yearly number is useful — but it hides two structural risks:
The clean way to think about ownership is a 5-year horizon, not 12 months. Use the pillar model here: Cost of Owning a Car in Singapore (5-Year Breakdown)
If you want the monthly realism view (to avoid instalment-only thinking), use: True Monthly Cost of Owning a Car in Singapore
If your annual ride-hailing spend exceeds ~$30,000–$36,000, ownership may begin to look rational — assuming you can carry liquidity and repair volatility without stress.
Stress-test your own numbers: Car vs Ride-Hailing Break-Even Calculator
A practical guideline: total transport cost should not exceed ~15–20% of gross income.
Example: if your annual car cost is $36,000, your gross income should ideally exceed ~$180,000/year for the decision to remain financially comfortable.
Full salary modelling: How Much Salary Do You Need to Own a Car?
A realistic planning range is commonly around $24,000 to $42,000+ per year depending on COE cycle, vehicle profile and usage.
Depreciation is usually the biggest, and COE is embedded inside that depreciation exposure. See: COE Cost in Singapore
No. Instalments are a financing method. The real annual cost includes depreciation, insurance, fuel, maintenance, parking/ERP and opportunity cost (and interest cost if you borrow).
Ownership starts to look rational when annual ride-hailing spend is consistently high (often ~$30,000–$36,000+), and you can carry liquidity and repair-risk comfortably. Use: the break-even calculator.
Annual cost is a useful snapshot, but ownership is best decided using 5-year exposure + monthly realism.
Before committing, compare: